Multiple choice

A shopkeeper marks his goods 40% above the cost price. He allows two successive discounts of 20% and 25% on the marked price. What is his overall profit or loss percentage?

  1. 2% profit

  2. 5% loss

  3. 10% loss

  4. 16% loss

  5. 12% loss
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100. Marked price = 140. Successive discounts of 20% and 25% mean the final price is 140 * 0.8 * 0.75 = 84. The loss is 100 - 84 = 16, which is a 16% loss.

AI explanation

Let the cost price be 100, so the marked price becomes 140. Using the equivalent discount formula for two successive discounts, the overall discount is 20 + 25 minus 5, resulting in a 40% discount on the marked price. The selling price is 60% of 140, which equals 84. Comparing this to the original cost price of 100 gives an overall loss of 16%.

Keep practicing — related questions